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2018 Supreme(Del) 1261

IN THE HIGH COURT OF DELHI AT NEW DELHI
VALMIKI J. MEHTA, J.
Shobha Thapar – Appellant
Versus
Oracle Software India Ltd. - Respondent
RFA No. 393 of 2018
Decided On : 09-05-2018

Advocates Appeared:
For the Appellant : Mr. Jagjit Singh

The obligations of the lessor and lessee upon termination of a lease, as well as the validity of notices of termination of tenancy, were central to the court's decision.

Headnote:

CIVIL PROCEDURE CODE - Recovery of Rent - Section 96 of CPC - Section 106 of Transfer of Property Act - Section 111 of Transfer of Property Act

Fact of the Case:

The appellant/plaintiff filed a suit for recovery of Rs.37,96,870 towards arrears of rent and mesne profits. The trial court partly decreed the suit for arrears of rent for the months from 1.7.2001 to 30.4.2002 totaling to Rs.6,25,950. Mesne profits/rent for the period after 30.4.2002 was not granted to the appellant/plaintiff on account of her refusing to receive possession of the tenanted premises from the respondent/defendant/tenant on 30.4.2002.

Finding of the Court:

The trial court held that the appellant/plaintiff was not entitled to mesne profits after termination of the lease on 30.4.2002 as the appellant/plaintiff was unjustified in refusing to receive possession of the tenanted premises on that date.

Issues: Validity of the notice of termination of tenancy, entitlement of the appellant/plaintiff for rent and mesne profits after termination of lease, and refusal of the appellant/plaintiff to receive possession of the tenanted premises.

Ratio Decidendi: The court analyzed the provisions of Section 106 and Section 111 of the Transfer of Property Act to determine the validity of the notice of termination of tenancy and the obligations of the lessor and lessee upon termination of the lease. The court also considered the legislative intent of amending Section 106 to validate defective notices for termination of tenancy.

Final Decision: The court dismissed the appeal, finding no merit in the appellant/plaintiff's claim for mesne profits after termination of the lease.

JUDGMENT :

VALMIKI J. MEHTA, J.

C.M. No. 19143/2018 (exemption)

1. Exemption allowed subject to just exceptions.

C.M. stands disposed of.

C.M. No. 19144/2018 (for condonation of delay)

2. For the reasons stated in the application, delay of 15 days in re-filing the appeal is condoned.

C.M. stands disposed of.

RFA No. 393/2018

3. This Regular First Appeal under Section 96 of the Code of Civil Procedure, 1908 (CPC) is filed by the appellant/plaintiff/landlady impugning the judgment of the Trial Court dated 5.12.2017 by which trial court has partly decreed the suit filed by the appellant/plaintiff/ landlady. The appellant/plaintiff/landlady filed the suit for recovery of Rs.37,96,870/- towards arrears of rent and mesne profits but trial court has decreed the suit only for arrears of rent for the months from 1.7.2001 to 30.4.2002 totaling to Rs.6,25,950/-. Mesne profits/rent for the period after 30.4.2002 has not been granted to the appellant/plaintiff/ landlady on account of her refusing to receive possession of the tenanted premises from the respondent/defendant/tenant on 30.4.2002.

4. The facts of the case are that the appellant/plaintiff filed the subject suit for recovery of Rs.37,96,870/-. How this figure of Rs.37,96,870/- is arrived at is stated in para 3.7 of the plaint and this para reads as under:-

“3.7 Defendant company committed breach in performance of obligations cast upon it under terms of lease deed. Defendant company did not pay rent of leased premises regularly as such is in arrears of rent. Since possession of the premises is not delivered unto Plaintiff on expiry of lease, Defendant is liable to pay mesne profits/usufructuary charges-cum-liquidated charges detailed as under:

(i)

Rent w.e.f. 1.7.2001 to 31.7.2002 i.e. for 13 months @ Rs.48,150/- per month

Rs.06,25,950.00

(ii)

Interest accrued upto July, 2002 @ 12% p.a.

Interest accrued from 1st August 2002 to Feb.2005 (31 months) @ 12% p.a.

Rs.00,43,817.00

Rs.01,94,045

(iii)

Mesne profits/usufructuary charges-Cum-liquidated charges as per clause 7(a) of lease deed @ 1.5 times of rent i.e. Rs.72,225 per month w.e.f. 1.8.2002 to 28.2.2005 (31 months)

Interest accrued on mesne profits From August 2002 to February, 2005 @ 12% p.a. (31 months).

Rs.22,38,975.00

 

 

 

Rs.06,94,083.00

 

Total

Rs.37,96,870.00

(Rupees Thirty Seven lacs Ninety Six thousand Eight hundred and Seventy only)”

5. According to the appellant/plaintiff, the appellant/plaintiff was entitled to mesne profits even after termination of lease w.e.f 30.4.2002 inasmuch as the case of the appellant/ plaintiff was that terms of the lease deed dated 22.11.1999 entered into between the parties were not complied with by the respondent/defendant/tenant, and therefore the appellant/plaintiff was not bound to receive back possession of the tenanted premises on 30.4.2002, and consequently the respondent/defendant being in unauthorized occupation was liable to pay mesne profits/damages even after 30.4.2002. The case of the respondent/defendant was that by its letter dated 16.1.2002 lease was terminated w.e.f 28.2.2002 and since the appellant/plaintiff failed to receive possession therefore the appellant/plaintiff is not liable to rent from 28.2.2002 and that the appellant/plaintiff is not entitled to mesne profits from 28.2.2002. may note that since the lease was terminable by a three months notice, hence the trial court has extended the date of 28.2.2002 to 30.4.2002.

6.(i) Trial court has dealt with the issue with respect to entitlement of the appellant/plaintiff for rent and mesne profits under two aspects/heads. The first aspect/head is of validity of the notice of termination of tenancy dated 16.1.2002 inasmuch as the notice of termination of tenancy dated 16.1.2002 was only of about one and half months ending on 28.2.2002, whereas in terms o





























































































































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